(CercleFinance.com) – Inditex, the parent company of the ready-to-wear brand Zara, reported on Wednesday a ‘solid’ operational performance for its delayed first quarter and better-than-expected sales for the start of its spring-summer season.
The leading European clothing distributor says it generated turnover up 7.1% to 8.2 billion euros in the quarter ended at the end of April, including growth of 10.6% at constant exchange rates.
Its gross operating surplus (Ebitda) increased by 8% to 2.4 billion euros, giving net profit up 10.8% to 1.3 billion euros.
If these figures are generally in line with market expectations, the group stressed that its spring-summer collections had been ‘very well received’ by customers.
At constant exchange rates, its sales between May 1 and June 3 increased by 12% compared to the same period last year.
‘This suggests that the group benefited from a catch-up effect after a particularly cool and rainy start to spring in southern Europe,’ explain RBC analysts.
Inditex, which offers a dividend of 1.54 euros per share, is currently trading on the basis of a PER of around 24x, in line with its historical average, notes the Canadian broker.
In any case, the market seemed to appreciate these announcements, since the stock rose by almost 5% on Wednesday morning on the Madrid Stock Exchange following this publication.
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